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PROSPECTS

Butter and spreads, as one of the smallest dairy categories, was also relatively quiet in terms of news in 2019. The category is significantly affected by the dynamics across Europe as the products (or at least the raw materials) in Croatia are predominantly from European countries.

Health and convenience trends see margarine and spreads lose some popularity

Margarine and spreads have lost some of their appeal as “the healthier alternative” among consumers. Despite sales being higher than those of butter, the public image of the products is dipping because animal-based fats are seeing a comeback of sorts and margarine has received some negative reviews for being “too artificial”.

Unlikely that unpackaged offerings will spread much

The trend of selling unpackaged butter and margarine is uncommon in Croatia, although sales of this type can be observed in a limited number of organic markets. It seems that the development of the healthy living and organic trend faltered due to the recent supply issues.

COMPETITIVE LANDSCAPE

The competitive landscape is roughly divided into the two major categories, butter and margarine and spreads, with each having a clear leader. Domestic company Zvijezda, the overall leader, dominates spreads and margarines due to its natural positioning in regard to edible oils, while Dukat dd, a part of the multinational Groupe Lactalis, is the clear leader in butter.

Hope for a more level distribution playing field thanks to new retail legislation

In Croatia, it seems that by achieving more attractive shelf space, a competitor can succeed in terms of sales. As an example, Dukat and Meggle Hrvatska doo, the top two players in butter, have managed to carve out a position where they are present in almost every grocery chain in Croatia.

New economy launches slip up in butter

The competitive landscape in Croatian butter is consolidated to the extent that it seems the same three leaders, Dukat, Meggle and Vindija dd, will always collectively dominate the shelves. Regardless of their company ownership, domestic and international, these players seem to enjoy the most consumer interest.

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